Analysis on Real Estate Enterprise Cost Accounting Problem

Transcription

1 Journal of Finance and Accounting 2016; 4(6): doi: /j.jfa ISSN: (Print); ISSN: (Online) Analysis on Real Estate Enterprise Cost Accounting Problem Yu Gu, Yanan Yuan Commercial College, Beijing Wuzi University, Beijing, China address: (Yanan Yuan) To cite this article: Yu Gu, Yanan Yuan. Analysis on Real Estate Enterprise Cost Accounting Problem. Journal of Finance and Accounting. Vol. 4, No. 6, 2016, pp doi: /j.jfa Received: September 19, 2016; Accepted: October 18, 2016; Published: November 15, 2016 Abstract: With the rapid and sustained development of China socialist market economy, the real estate industry has become the industry part that plays a dominant role in national economy. But the related accounting system of real estate enterprise is not perfect in China, and fails to have a full range of coverage, so part of the real estate enterprises will take advantage of the system vulnerabilities to do some illegal behaviors, including the manipulation of profits, the whitewash of statements and other violations, especially in the case of cost accounting. In this paper, by analyzing the reasons and current situation emerges in the cost accounting of the real estate industry in our country, will put forward corresponding countermeasures on the accounting of real estate enterprise accounting cost. In order to ensure the normal operation of the real estate business management, to ensure that the interests of investors, and then stabilize the socialist market economy to ensure that the formulation of state macro-control policy. Keywords: Real Estate Enterprise, Cost Accounting, Countermeasures 1. Introduction Accounting standards for enterprises in China 103rd provisions, enterprises should be based on the production and operation of the enterprise characteristics and management requirements, determine the cost of the enterprise accounting object, the cost of the project and the cost calculation method. Cost accounting object, calculation method of cost has been determined, shall not be arbitrarily changed, such as the need to change, should according to the management authority, the general meeting of shareholders or the board of directors, or the manager (director) approval of the conference or similar institutions, which shall be explained in the notes to financial statements. [1] For the real estate development enterprise accounting, easy to carry out the accounting standards for enterprises ", the ministry of finance formulated the real estate development enterprise accounting system. Among them, the caption of account "development cost" in no. 401 is as follows: (1) Enterprises in the land, houses, all expenses incurred by the development process of supporting facilities and construction projects in the enterprise. Such as: the decoration and the addition of indoor facilities for rental housing and rental housing project expenditures. And for the leasing business in the development of products monthly accrued amortization of lease product development, can included in the "operating costs" subjects. For enterprises to raise funds and other financial activities and interest payments, and the business administration department for the organization and management of real estate development and operation management of costs incurred, as period costs, directly included in the current profits and losses. (2) Enterprises in the land, housing, the cost of the development process and supporting facilities in the construction project, including compensation for land requisition and demolition, preliminary engineering costs, infrastructure costs, construction and installation costs, infrastructure costs and indirect costs. The development for enterprises in the land expropriation and relocation compensation, pre engineering fees, infrastructure construction and installation fees, which belongs to the direct costs, directly included in the subject (the objects of cost accounting cost project); overhead cost burden by the development of products, should be first in "indirect costs" subject to collection, at the end of the month, according to the standard of distribution, distribution included in relevant the development cost of the product. In addition, the business development of the land, housing, infrastructure and construction projects, the use of a packet mode, should be

2 337 Yu Gu and Yanan Yuan: Analysis on Real Estate Enterprise Cost Accounting Problem made in accordance with contract enterprises "project price settlement bill acceptance work Cheng, included in the subject (the cost of project cost accounting object), credit accounts payable, payable construction enterprises "subjects. The development of land, housing, self used facilities and construction projects, the cost, can be directly included in the course (about cost accounting object the cost of the project), credited to" stock material "," bank deposits "and other subjects. If the enterprise self construction of large-scale construction and installation engineering, according to the need for additional" construction "," construction cost accounting and other subjects, to collect proprietary engineering construction and installation costs, at the end of the month, according to the actual cost of the enterprise into the subject. The recipients of the equipment in the process of real estate development, attached to the project entity, should be based on the attached object, to deliver equipment issued during installation, according to the actual cost in the course of credit, "inventory of equipment". When, according to the accrual basis and the income and the cost of the matching principle, should be a commercial housing product development costs, such as transfer not public facilities fees, the cost should be transferred in a commercial housing development and sales of the products shall be withholding, withholding, debit of the subjects, credited "accrued expenses" course. The difference between number and the number of actual expenditures for withholding, increase or decrease the development cost of the product. (3) The enterprise has been completed and acceptance of land, housing, infrastructure and construction project, should be timely costing. The end of month cost, according to the actual cost of debit "product development" subjects, credited to the subject. Enterprise to the rental housing decoration and facilities in the room added to the completion of the project, should be timely. Transfer the cost of the project, debit "lease product development" subjects, credited to the subject. (4) The enterprise should be based on the operating characteristics of the enterprise, the enterprise's cost accounting object, project cost and cost accounting method for detailed accounting development costs, it should be according to the type of development costs, such as "land development", "housing development", "facilities development" and "construction project" and other settings ledger, accounting for details on cost accounting object and project cost. [2] For the development of indirect costs, through the system of No. 407th accounting subjects: (1) The development of indirect costs, indirect costs, internal independent accounting unit accounting of enterprises and for the development of products including wages, welfare expenses, depreciation costs, repair costs, office expenses, utilities, labor protection costs, the housing turnover amortized. To the enterprise, the administrative department (Headquarters) and for the organization and management of production and business activities of the management fees should be credited as period cost, "management fees". (2) The indirect expenses incurred by enterprises, the debit of the subjects, credited "wages", "welfare payable", "accumulated depreciation". "Housing turnover" and other subjects. (3) The development of indirect costs should be in accordance with the provisions of the enterprise cost accounting method, allocated costs related to the accounting object, debit "development costs", credited to the subject. (4) the development of indirect costs should be the end of all according to a The accounting object is allocated, and there is no balance. [2] 2. Status Quo and Existing Problems of China's Real Estate Listed Companies' Cost Confirmation Cost accounting method of the real estate enterprises consists of three parts, namely land development cost accounting, the cost of housing development accounting, cost accounting and related facilities development. By the end of 2014, China's total of 144 real estate listed companies, the cost of production in general in the following manner. (1) For the development of cost accounting the product variety, direct costs according to cost accounting object collection, development and distribution of indirect costs by a certain proportion of the standards included in the relevant product development cost. (2) For a pure land development project, calculated per square meter of land development cost per unit, according to the purpose and use of the area, were calculated to develop products every detail project (. 3) For real estate development projects together with the overall, its cost can distinguish the burden of the object, according to the actual occupation area allocated to the cost of commercial housing. (4) The cost of public facilities accounting, where the development and construction of residential housing development costs included in the current synchronization; and where residential facilities are not synchronized, public facilities will not occur by general methods. First determine the withholding amount, according to the budget cost after approval from the development of the subject of pre extraction, until after each period of payment. [3] The cost accounting method used at present, there are mainly the following two aspects: (1) Real estate accounting object has the particularity, and relatively complex, so should the time due to the accounting object, fully considering the relevant factors to confirm. The current cost accounting of our country is not perfect, and can not meet the accounting to determine the object demand, so there will be a lot of problems. The accounting object cannot be unified between enterprises, in the actual work will be divided carefully or too coarse arbitrary phenomenon. If divided carefully, will lead to many common costs need to allocate, if the division is too thick, it is difficult to reflect the actual cost of the level of development of the project. This will lead to confusion, so that the actual data become a lack of system, even will become unmanageable. Plus the cost allocation and cost allocation is not reasonable, it makes the problem more serious Heavy. To determine the accounting object, the enterprise has great randomness, the enterprise will confirm according to their own needs, or for other reasons, lack of principle, so the

3 Journal of Finance and Accounting 2016; 4(6): development of the actual cost of the project is difficult to control, there will be false, cause the distortion of accounting information, for enterprises to deliberately increase the cost and an important means to pay less tax. [4] (2) The cost of distribution and accumulation occurred is not perfect. In accordance with the provisions of the accounting system, expenses shall be included in the cost of the product, but for the burden of multiple objects will be the first to set, then the provisions of this redistribution. In order to let enterprises have to allocate a greater autonomy, a fair and reasonable allocation for enterprises. But there is no definite criterion cost allocation, distribution makes enterprises do not attach importance to cost, random distribution costs, any amortization expense, not Only enterprises will lead to confusion, will lead to a bubble economy, cause the distortion of accounting information. [5] To investors, creditors and the relevant government departments is misleading, making it difficult for them to grasp the enterprise operation ability and financial status, making the wrong decision, which will affect the company's normal operation, and even affect the order of the market economy and may cause investors hold. That lack of trust, hindering the construction of social morality. Real estate enterprises are mostly large enterprises, has a huge asset, so the accounting information of the extent of its influence is very wide. And if the real estate enterprise accounting information problems, not only damages the interests of investors, but also affects the health and stability of the socialist market economy system thus, the stability of socialist market economy is destroyed, there may even affect the national macro-control policies. 3. Suggestions on Cost Accounting of Real Estate Listed Companies 3.1. Define the Cost Accounting Object Cost accounting object uncertainty, directly affect the operating results. It should be systematic, for the large range of unified classification, then a small range of cutting. For example for large projects, can be carried out on regional division of cost accounting, and then again divided, determine division of the smallest unit, and for small scale projects directly accounted for. [6] This is not only conducive to macroeconomic control, but also makes the distribution more reasonable, to ensure the quality of the information, even if it is divided into different engineering, finally have the same standard. [7] 3.2. The Specific Collection and Institutional Cost of Real Estate Enterprises At present the real estate enterprise cost and not clearly defined. Therefore, in view of the particularity of real estate enterprises, recommended the introduction of a general cost of development projects only regulations. A house, the cost borne by the unit; development projects for many houses, the direct cost of every house shall be borne by each of them. The indirect costs can distinguish between categories, such as residential buildings, office buildings, commercial buildings and other categories, because of their previous expense fee rate standard is not the same as the percentage of cost of its commitment to the nature is not the same, to distinguish between categories, similar to further cost accumulation, such as the development of several residential buildings, should share the cost according to the direct cost of each one of the proportion. 4. Conclusion Real estate accounting is internal guarantee for the healthy development of real estate. Yet the current form is still not optimistic, and the question remains. so the cost of real estate enterprise is an important performance. To solve the main problem, the specific collection and institutional cost of real estate enterprise is a good choice. [9] The real estate enterprise's development momentum cannot be prevented, and as a new generation of accounting workers will further improve the real estate enterprise accounting. Acknowledgement Fund project: the Beijing municipal science and technology innovation platform project "business and enterprise service innovation research" Appendix 144 Listed Real Estate Companies SZ Hualian holding co. LTD 9, SZ Financial street holding co. LTD 491, SZ Tianbao infrastructure co. LTD 35, SZ Wisefund Investment holding co. LTD 6, SH Tianjin real estate development (group) co., LTD 80, SH China World Trade Center holding co. LTD 109, SZ Shenzhen special economic zone real estate (group) co. LTD. 114, SZ Cofco property (group) co., LTD 278, SZ Continental holding co. LTD 232, SZ Hainan expressway co., LTD 9, SZ Soyea technology holding co. LTD 61,

4 339 Yu Gu and Yanan Yuan: Analysis on Real Estate Enterprise Cost Accounting Problem SZ Jia KaiCheng group co., LTD. 211, SZ Millions of the Bank's shares holding co. LTD 212, SZ US shares holding co. LTD 656, SZ Asia Pacific industry holding co. LTD 3, SZ Pearl River holding co. LTD 13, SZ Chongqing development holding co. LTD 31, SZ Silver run investment holding co. LTD 1, SZ Shenzhen zhenye group A holding co. LTD 202, SH Zhejiang East holding co. LTD 11, SH Shida group holding co. LTD 5, SH City North high holding co. LTD 8, SH Heaven in stock holding co. LTD 2, SH Huaxin shares holding co. LTD 29, SH Wai Gao Qiao holding co. LTD 352, SH City investment holding co. LTD 269, SH Chinese enterprises holding co. LTD 127, SH Pearl holding co. LTD 32, SH Good home holding co. LTD SH Gemdale group holding co. LTD 808, SH Uol capital holding co. LTD 315, SH Room share holding co. LTD SH Tibet city holding co. LTD 18, SH Industrial Corporation holding co. LTD 38, SZ Zhongguancun holding co. LTD 39, SZ Tieling holding co. LTD 1, SZ Sanxiang shares holding co. LTD 21, SZ New Hualian holding co. LTD 92, SZ Nwanze shares holding co. LTD 27, SZ Transit City cast holding co. LTD 804, SZ Guangdong Hongyuan A holding co. LTD 20, SZ Oceanwide holding co. LTD 400, SZ Guangyu group holding co. LTD 58, SZ Jinbin development holding co. LTD 43, SH Changchun economic development holding co. LTD 9, SH Wanye enterprises holding co. LTD 97, SH Electronic holding co. LTD 16, SH Chinese happy holding co. LTD 1,687, SH First shares holding co. LTD 748, SH Tianjin Songjiang holding co. LTD 19, SH Beijing vantone real estate holding co. LTD 78, SH Great Dragon real estate holding co. LTD 19, SH Gree real estate holding co. LTD 11, SH Phoenix stakes holding co. LTD 15, SH Real development holding co. LTD 77, SH InterContinental oil and gas holding co. LTD 65, SZ Sunshine City holding co. LTD 448, SZ Dark Chase holding co. LTD 9, SZ The Riverside group holding co. LTD 594, SZ Jiangsu Dagang holding co. LTD 67, SZ Zhonghong shares holding co. LTD 67, SH Beijing investment Intime holding co. LTD 62, SH East Silver Star holding co. LTD SH Jinqiao holding co. LTD 74, SH Donghua industrial holding co. LTD 29, SH Lushun real estate holding co. LTD 200, SZ Hefei urban construction holding co. LTD 25, SZ Rongfeng holdings holding co. LTD SZ Infront of micro holding co. LTD 12, SZ Baoan District real estate holding co. LTD 48,

5 Journal of Finance and Accounting 2016; 4(6): SZ Dark country holding co. LTD 17, SZ Yihua Health holding co. LTD 42, SZ Zhongnan construction holding co. LTD 882, SZ Investment real estate holding co. LTD 1,797, SZ Tonge group holding co. LTD 273, SZ World-link holding co. LTD 191, SH Green holding co. LTD 8,612, SH Yunnan quasi- holding co. LTD 28, SH China industry holding co. LTD 26, SH Poly real estate holding co. LTD 4,234, SH Zhejiang guangsha holding co. LTD 39, SH Pearl River enterprises holding co. LTD 100, SH *ST New plum holding co. LTD 4, SZ R development holding co. LTD 915, SZ China Wuyi holding co. LTD 100, SZ Kim car city holding co. LTD 4, SZ Shahe shares holding co. LTD 18, SZ Southland real estate holding co. LTD 60, SH Zhangjianggaoke holding co. LTD 50, SH Beijing energy real estate holding co. LTD 27, SH Ningbo fuda holding co. LTD 111, SH New harbour holding co. LTD 64, SH Tongda venture holding co. LTD 6, SH Cinda real estate holding co. LTD 216, SH World source holding co. LTD 31, SH Qixia formation in construction holding co. LTD 303, SH Hua FA shares holding co. LTD 223, SZ Run resource holding co. LTD 29, SZ Air real estate holding co. LTD 161, SH Shimao shares holding co. LTD 852, SZ Rong Zhaoye holding co. LTD 61, SZ Overseas Chinese town A holding co. LTD 1,016, SH North Star industrial holding co. LTD 324, SH Langfang development holding co. LTD SH United States energy holding co. LTD 239, SH High-tech holding co. LTD 10, SH Fashion industry holding co. LTD 18, SZ Country real estate holding co. LTD 50, SH Garbo group holding co. LTD 103, SZ Vanke A holding co. LTD 5,026, SZ Shunfa hengye holding co. LTD 199, SZ Depth property A holding co. LTD 33, SZ Green view holding co. LTD 1, SH Zhongyin shares holding co. LTD 37, SH Hong Kong holding co. LTD 186, SH Beijing urban construction holding co. LTD 327, SZ Lucky Star shares holding co. LTD 374, SZ Cotton stock holding co. LTD 2, SZ CAC Group holding co. LTD 416, SZ Real estate holding co. LTD 30, SH Dragon Mountain holding co. LTD 9, , SH Suzhou high-tech holding co. LTD 125, SH Gorgeous family holding co. LTD 5, SZ Suning universal holding co. LTD 376, SH Wan Shing Medical Therapy holding co. LTD 1, SH Airport shares holding co. LTD 26, SZ Hyde shares holding co. LTD SZ Sun shares holding co. LTD 34, SH Huayuan property holding co. LTD 218,

6 341 Yu Gu and Yanan Yuan: Analysis on Real Estate Enterprise Cost Accounting Problem SH Big city holding co. LTD 206, SZ Investment in HNA holding co. LTD 29, SH Dumas shares holding co. LTD 239, SZ Rong an real estate holding co. LTD 28, SH Convex horse horses holding co. LTD SH US shares holding co. LTD 3, SH Lu Jia Zui holding co. LTD 250, SH Nanjing high-tech holding co. LTD 158, SH Wolong real estate holding co. LTD 67, SZ The Rhine sports holding co. LTD 118, SH Xinhu zhongbao holding co. LTD 497, SH First city kingberry Chase holding co. LTD 292, SZ Century star holding co. LTD 3, SZ Guang Yu development holding co. LTD 67, SZ Good group holding co. LTD 104, References [1] The ministry of finance. The accounting standard for business enterprises [M]. Beijing: economic science press [2] Finance. The accounting standard for business enterprises [M]. Beijing: people's publishing house [3] Chen Yujie, Chen Xinguo. Real estate development enterprise accounting and financial management [M]. Joint publishing house of China business [4] Huang Chongyu. Discussing the problems and countermeasures in Real Estate Accounting [J]. Foreign investment in China, 2013 (20): 172 [5] Qian Jian. Problems existing in the real estate enterprise income and cost accounting and perfecting countermeasures [J] Accounting 2010 (03): [6] Linghong Yuan. Analysis on the common problems of accounting cost accounting in real estate enterprises [J] Finance and Accounting Research (20): [7] Bo Jing. Analysis on the financial report of China Vanke Real Estate Enterprise in 2010 [J] Accounting of Chinese township enterprises 2011 (11): [8] Zitong Min. Analysis on the real estate enterprise cost accounting problem [J] Manager Journal 2014 (13): [9] Xiaoyan Guo. The cost accounting of real estate investment and development in China [J] The window of the accounting 2010 (02): [10] Shuping Li. Discussion on the cost accounting of real estate enterprises [J] Accounting practice 2011 (09): 86-87